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5 Surprising Statistics About the State of Employee Financial Wellness

5 Surprising Statistics About the State of Employee Financial Wellness

by | Nov 7, 2023 | Blog

5 surprising statistics about the state of employee financial wellness. Economic uncertainty has reshaped how employees think about their benefits. Here are key insights into the state of employee financial wellness.

Economic uncertainty throughout the past few years has reshaped how employees think about their benefits. In their 2023 Workplace Benefits Report, Bank of America surveyed 800+ American workers, examining the success of their benefits programs. The responses illuminate the growing strain of financial stress on many workforces — and just how important financial wellness benefits are to offsetting that stress. 

Here are 5 key statistics from the survey that reveal important insights into the state of employee financial wellness.

A surprising statistic about the state of employee financial wellness

1. 63% of employees feel that economic uncertainty affects current and future workplace benefits and 401(k) retirement plans.

Employees feel the strain of prolonged economic uncertainty, although different generations show their stress differently.  Workers in the baby boomer generation are having to delay retirement due to the instability of the current economy. Millennial and Gen Z employees grapple with high levels of student debt and may worry about their current financial situation. But however your team is affected, one thing remains constant: workplace morale and productivity suffer.

Providing employer-sponsored financial benefits is one way to put your team at ease. 3 out of 5 respondents reported that they would feel confident investing in a 401(k) or alternative retirement plan through their employer will help build their savings for retirement.

2. Women feel economic strains more acutely: 39% of women had to look for additional employment to keep up with rising costs compared to 17% of men.

According to Bank of America, women generally feel financial stress more significantly than their male counterparts. More women lie awake at night worried about their personal finances and more women are worried that due to inflation, they won’t be able to make ends meet. The workplace benefits that you provide need to be tailored to each employee and account for differences between demographics. A static solution that is the same for everyone does not address the complex needs that the world of personal finance creates.

3. The percentage of employees that prioritized saving for retirement has dropped by ⅓.

As economic situations fluctuate, the priorities of your workplace do as well. As retirement planning dropped in focus, employees prioritized paying off credit card debt and building an emergency savings fund. These statistics highlight the need for a comprehensive financial wellness program. A band-aid solution such as a 401(k) matching plan or something similar may work in some years, especially prosperous ones. However, these programs need to do a better job of lending a hand to your workforce during turbulent economic periods.

4. 2 in 5 workers rate their employee financial wellness as “good or excellent”, the lowest figure since 2010.

This is alarming but not necessarily surprising, considering the tumultuous economic strain of the COVID-19/Coronavirus pandemic and subsequent years. When surveyed, only 56% of employees said that they felt optimistic about the future, a decrease from 61% the previous year. As these feelings persist, it becomes more imperative for employers to provide some form of financial wellness solution to help employees build financial confidence.

5. ¾ of workers feel that employee financial wellness is the responsibility of their employer

This idea of improved financial wellness does not solely come from increasing pay. The responsibility also encompasses employers that must instill healthy personal finance habits through education or additional resources. Not only do employees think it’s the responsibility of their company, but employers think so as well. Ninety-six percent of employers that Bank of America surveyed said that their employee’s financial wellness is on their shoulders. However, there is a disconnect between what companies say and how they’ve put their thoughts into action. Currently, only 40% of companies offer any sort of financial wellness program.

Address employee financial wellness head-on with help from Best Money Moves.

Best Money Moves is a mobile-first financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As an easy-to-use financial well-being solution, Best Money Moves offers comprehensive support toward any money-related goal. With 1:1 money coaching, budgeting tools and other resources, our AI platform is designed to help improve employee financial well-being. 

Whether it be retirement planning or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. We have robust benefits options for employers, regardless of their benefits budget. 

Our dedicated resources, partner offerings and 700+ article library make Best Money Moves a leading benefit in bettering employee financial wellness.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

What are employee wellness initiatives? (Plus, 5 key initiatives for your team)

What are employee wellness initiatives? (Plus, 5 key initiatives for your team)

by | Oct 13, 2023 | Blog

What are employee wellness initiatives? Wellness initiatives can give your benefits plan a powerful boost. Here are 5 key initiatives to try for your team.

Eighty-seven percent of employees consider health and wellness benefits when choosing an employer, according to a study by recruiting website Zippia. Adding wellness initiatives programs to your benefits package can provide your company an advantage in attracting talent over your competitors. 

Here’s what to know about employee wellness initiatives as well as 5 key initiatives that your team can implement to improve the employee experience.

a surprising statistic about the need for employee wellness initiatives

What are employee wellness initiatives?

Employee wellness initiatives are benefits programs that a company provides its employees. The purpose of these solutions is to promote the health and wellbeing of all the members of the office. Not only do companies see improvements in their workers mental and physical health, they often will see positive returns on their productivity and quality of work as well. In addition to cultivating a better work environment, according to the same Zippia study, 72% of employers saw a reduction in their healthcare costs after implementing these programs. 

These wellness programs can come in many different forms. Here are 5 key wellness initiatives to help your team succeed.

1. Fitness classes and health education

Encouraging your employees to exercise can positively impact both their physical and mental health. Fitness benefits can also appeal to all manner of employees, whether they enjoy complex lifting courses or low-impact aerobics. Providing stipends for these classes offers a cost-saving alternative to building an on-site gym or health club.

2. Schedule flexibility

In the post-COVID-19 workforce, flex-time is one of the most requested employee benefits. Employees want the ability to set their schedule for when to come into the office and when to work from home. The flexibility has the added benefit of reducing stress and anxiety in the workplace which will help increase productivity in the long run. Flexibility also provides added benefits for working parents trying to balance work and childcare duties.

3. Health screenings

Common reasons that people don’t go to the doctor include a fear of what a routine checkup might cost, a feeling of embarrassment or they lack access to the proper resources. All of these issues can be alleviated by providing onsite health screenings. Screenings only take 15-20 minutes of people’s time and to increase participation, can be provided during work hours.

Some employees may be dissuaded or nervous in volunteering in a program like this. Common incentives for participation include cash bonuses, reducing contributions towards health insurance and providing a flexible spending account.

4. Wellness goals

Declaring a shared goal that employees work on together while encouraging others to participate and excel in the programs helps raise the participation percentage of the benefits and can double as team-bonding exercises as well.

These goals can be carried out individually or workers can form teams and try to achieve them together. Some common challenges that workplaces have thought up are meditation, drinking more water, keeping a gratitude journal and walking/biking to work.

5. Financial wellness programs

Only 42% of employees rate their financial wellness as good or excellent, according to a report by Bank of America. But 76% of employees feel that it’s their employer’s responsibility to help them bridge the gaps in their financial wellbeing.

In response, many companies have started to provide financial wellness programs that assist clients with their budgets and guide them on a path towards financial security. When it comes to financial wellness programs, the best path forward is to provide a comprehensive one. Personal finance comes with unique issues for each of your employees and requires holistic answers for employees of all ages and financial backgrounds.

Give your team best-in-class employee financial wellness initiatives like Best Money Moves.

Best Money Moves is a mobile-first financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As an easy-to-use financial well-being solution, Best Money Moves offers comprehensive support toward any money-related goal. With 1:1 money coaching, budgeting tools and other resources, our AI platform is designed to help bolster employee financial wellbeing.  

Whether paying off debt or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. We have robust benefits options for employers, regardless of their benefits budget. 

Our dedicated resources, partner offerings and 900+ article library make Best Money Moves a leading benefit in bettering employee financial wellness.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

3 Ways Financial Stress Impacts Employees

3 Ways Financial Stress Impacts Employees

by | Oct 10, 2023 | Blog

3 ways financial stress impacts employees. Find out how financial stress may be affecting your workforce, and impactful ways companies can help.

More than 2 in 3 adults cite inflation, money and/or the economy as a leading source of stress, according to a report from the American Psychological Association (APA). Consequently, over time, financial stress can end up causing physical, emotional and mental health issues for employees of all ages.

With the support of employers and a robust financial wellness program, employees can dial down their financial stress over time.

A surprising statistic about the impacts of employee financial stress

1. Financial stress can cause physical health issues.

Over time, money-related stress and worry can lead to physical health issues that may ultimately require a doctor’s intervention. It’s common for those experiencing chronic financial stress to also have physical symptoms, like headaches, migraines, insomnia and fatigue. 

According to the APA’s report, employees with high stress levels are 3x as likely to experience headaches and fatigue, compared to employees with average stress levels. These physical health issues can inhibit employees from showing up as their best selves and ultimately decrease employee productivity.

2. Financial stress can harm employees’ mental health and self-esteem.

Beyond the physical body, money-related stress and worries can impact well-being in other areas, such as mental health and self-esteem. According to PwC’s 2023 report, more than half of employees say they’ve experienced decreased self-esteem and mental wellness due to their financial stress. The mental health effects of financial stress can present itself in many ways, including employees feeling anxious, nervous, sad or depressed. Moreover, the lack of a clear, grounded headspace can make it harder for employees to concentrate and remain engaged throughout the day.

3. Financially stressed employees feel less connected to their company.

It’s important to remember that financial stress is not only tied to debt-related worries, like a mortgage or car loan — financial stress can be tied to day-to-day financial expenses, like affording food or transportation to work. Over time, financial stress among employees can lead to retention issues.

Employees that are financially stressed are less likely to feel connected to their employer, and ultimately, may consider looking for another employer. According to a PwC report, employees who are financially stressed are 33% more likely to say that they don’t feel connected to their company than those who are not financially stressed. The lack of belonging at a firm can lead employees to look for another employer. 

In addition, in PwC’s report, more than half of all employees say they’d be attracted to employers that care more about their financial well-being. This points to a growing trend of employees increasingly wanting an employer that makes them feel heard and supported, especially regarding their financial well-being.

Financial wellness support has increasingly become a standard in the corporate benefits space. Rather than being seen as a “nice-to-have,” top talent see financial wellness support and benefits as a “must-have” benefit for their next employer.

Looking for a financial wellness program fit for all? Try Best Money Moves.

Best Money Moves is a mobile-first financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As an easy-to-use financial well-being solution, Best Money Moves offers comprehensive support toward any money-related goal. With 1:1 money coaching, budgeting tools and other resources, our AI platform is designed to help bolster employee financial wellbeing.  

Whether paying off debt or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. We have robust benefits options for employers, regardless of their benefits budget. 

Our dedicated resources, partner offerings and 900+ article library make Best Money Moves a leading benefit in bettering employee financial wellness.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

Best Money Moves Sneak Peek: Are Your Employees Financially Stable?

Best Money Moves Sneak Peek: Are Your Employees Financially Stable?

by | Sep 27, 2023 | Blog

Best Money Moves Sneak Peek: Are your employees financially stable? Get a special inside look into the resource library of Best Money Moves.

Whether your employees need help with day-to-day budgeting, debt management, planning for their financial future or something in-between, our resource library can help. Best Money Moves users have access to over 900 unique articles, videos, webinars and calculators across a range of financial topics. Users at any point of their financial journey can find the guidance they need when they need it most.

Enjoy a sneak peek of a user-favorite Best Money Moves article: 10 questions to determine if you’re financially stable

Lots of moving pieces factor into your financial stability. Whether you’re trying to save, building a budget, planning for retirement or otherwise handling your money, it’s easy to get overwhelmed. However, there are questions you can ask to make sure you’re on the path toward financial stability — and steps to take if you’re not quite there yet.

1. Do you keep a budget?

Setting a fixed budget is the first step toward responsible spending. List your income and your expenses so you clearly see where to cut costs and save each month. 

Start by listing the total income you bring in each month, including your salary, a spouse or partner’s salary and other recurring income such as alimony or childcare. Then, compare this income to an itemized list of your expenses. It’s helpful to split your list into “fixed” expenses that stay constant every month (rent, car payments, etc.), and varied costs (entertainment, clothes). By splitting necessary costs from everything else, and keeping track of what you spend money on, you can better learn your spending habits and find places to reduce unnecessary spending.

2. Do you think through big purchases?

Patience is important when it comes to spending. While it’s easy to buy on impulse, splurging can result in purchases outside of your budget. When making a big purchase — whether a large appliance, a vacation or even a home — compare your options to find the best value.

3. Do you put money into savings every pay period? 

Saving is key to long-term financial stability. Building a savings ensures you’ll be prepared for whatever emergencies life throws your way. Even if you only put away a small amount each month, these savings will grow over time. 

To guarantee you save, try having your bank automatically transfer part of each paycheck to a savings account. If your bank isn’t able to do so, check with your employer to see if they can automatically deposit some of your paycheck into a savings account instead.

4. Do you have enough savings to cover three months of expenses?

According to the Federal Financial Literacy and Education Commission, you should have enough savings to cover three months of expenses before you start making any other investments. Our recommendation is to save closer to six months’ worth of expenses, but three months is a great place to start building your savings over time.

Regardless of your overall goal, if you have enough in savings to last you at least a few months, it likely means you’re in a healthy place financially and don’t have to stress about breaking your budget when an unexpected expense arrives. For more in-depth information on building an emergency fund, read our article How do I build an emergency fund?

5. Do you know what your credit score is and how to keep it in good shape?

Your credit score reflects your history of borrowing and paying back money and is comprised of a variety of factors, including your current unpaid debt, your history of paying bills and your total number of credit accounts. Banks and other lenders use your credit score to determine the likelihood that you’ll repay a loan on time. A high credit score means you’ll likely have an easier time qualifying for a mortgage, credit card or other forms of credit.

Many credit card companies or banking apps offer their customers a free monthly credit score, usually found on your monthly statement or by logging into your bank account’s mobile application. It’s important to note, however, that these free scores are generally educational scores and may be several points off from your actual score. Alternatively, you can purchase a copy of your credit score from each of the three nationwide credit bureaus Equifax, Experian and Transunion. 

Keep your score in good shape by paying your loans on time, not getting close to your credit limit and only applying for the credit you need and know you can pay back.

6. Do you have an established credit history?

Having an established history of using credit will help you with your credit score. The more often you pay your loans on time, the better your score will be and the better your chances are at receiving loans in the future. 

If you do not have experience with credit yet, the Consumer Financial Protection Bureau recommends looking into products designed to help you build credit. There are several options — such as secured credit cards and credit builder loans — that were created to kickstart your credit history.

7. Do you have alerts set up for your checking accounts?

Setting up alerts for your checking accounts is an easy way to avoid overdraft fees. Overdraft fees occur when you don’t have enough money in your account to complete a purchase, but the bank allows the transaction to go through anyway. Alerts on your account will tell you when you are low on money. This is important because, even if you’ve recently made a deposit, your funds may not be immediately accessible, which means that you can still overdraw your account and end up paying fees. 

Be proactive and set alerts to ensure you’re always aware of how much money you have access to at a given time.

8. Do you plan for your tax refund?

Financial stability is often contingent on financial planning, and having a plan for your tax refund can help you reach or maintain financial stability. 

Estimate how big your refund will be based on how much you earn, and then create a plan for its best possible use. Whether you put it into savings or use it to catch up on bills, planning ahead will help you make the most of your refund. 

To really plan ahead, put down your savings account and routing numbers when you file your taxes. This way, the IRS can deposit your check directly into savings so there’s no temptation to spend it right away.

9. Do you have long-term financial goals?

It’s always healthy to have long-term financial goals. Having realistic, specific goals can help you stay on track with your spending.  This concrete planning for the future motivates you to save and gets you to where you want to be financially.

10. Are you planning for retirement?

It’s never too early to start planning for the future, especially if you’ve reached a point where you can save money every month. A retirement fund may seem daunting or too far off to worry about, but contributing to one regularly can help you save up over time. 

The amount needed for a comfortable retirement varies from person to person, but a general rule is that you will need 70% of your current annual salary. However, if you plan on being very active in retirement, this number may be higher. 

If you haven’t started thinking about retirement yet, start by establishing an Individual Retirement Account (IRA) through your bank or other financial institution. An IRA is an account that allows you to save money for retirement with tax-free (or tax-deferred) growth. By keeping retirement in the back of your mind, you’ll ensure your financial stability lasts long after you stop working. 

Managing your finances may seem difficult at first, but there are many simple steps you can take to help you become more financially stable.

Best Money Moves gives your employees access to a detailed library of 900+ financial articles, videos, webinars and other tools.

Best Money Moves is a mobile-first financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As a comprehensive financial well-being solution, Best Money Moves offers 1:1 money coaching, budgeting tools and other resources to improve employee financial well-being. Our AI platform, with a human-centered design, is easy to use and fit for employees of any age. 

Whether it be retirement planning or securing a mortgage, Best Money Moves can guide employees through the most difficult financial times and topics. Our dedicated resources, partner offerings and 700+ article library make Best Money Moves a leading benefit in bettering employee financial wellness. 

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.

3 Ways Companies Can Fight Racial Wealth Inequality

3 Ways Companies Can Fight Racial Wealth Inequality

by | Sep 5, 2023 | Blog

3 ways companies can fight racial wealth inequality. Learn more about the effects of wealth inequality and how organizations nationwide are working to promote racial wealth equity.

Racial wealth inequality is a pervasive problem for American workforces. The median household income is around $101,418 for Asian households and $77,999 for White households, according to data from the U.S. Census Bureau. However, the median for Hispanic households is $57,981 and the median for Black households is $48,297. 

Combating racial wealth inequality in the workplace requires time, resources and the participation of senior leadership. These three strategies target common sources of racial wealth inequality in order tp create a more equitable landscape for all employees.

A surprising stat related to the fight against racial wealth inequality

1. Target housing inequality with mortgage resources and advising.

For many, homeownership is a guaranteed track toward building wealth — however, this pathway to wealth isn’t paved the same for all Americans. Today, the mortgage lending process continues to be entrenched with racial bias and discrimination — Black mortgage applicants are 80% more likely to be denied, compared to their White counterparts, according to the Center for Public Integrity. And if approved, Black homeowners are usually given costlier, higher-risk mortgages than their White counterparts — ultimately, leading to less wealth amassed over time. 

Policymakers and the private sector have an opportunity to help create a more equitable path toward homeownership and obtaining a mortgage. For instance, some corporations have invested in employee financial benefits that support future homeowners, such as access to small-balance mortgage loans or down payment assistance programs. Other companies offer 1:1 financial advising, which can help employees compare mortgages. Together, these resources can help employees root out racial disparities in the homeownership process, like disproportionately worse mortgage loans.

2. Fight racial wealth inequality with student loan assistance.

Even years after graduation, many employees still battle looming student loan debt. However, Black and Brown employees tend to carry about 30% more student loan debt than their White counterparts, according to research by the U.S. Treasury Department. This is a result of compounded inequality; the lack of wealth for Black and Brown families doesn’t allow them to pay for college, which in turn forces many Black and Brown students to accumulate thousands in debt to pay for school.

Student debt follows many people into the full-time workforce; however, for Black and brown employees, it’s disproportionately more difficult to pay off student loans. For every dollar that Black families earn, White families earn $6, according to the Federal Reserve Bank of Minneapolis. Black and Brown families have less money to allocate for bills and other expenses, including student debt. 

To help employees combat their student loan balance, companies have been investing in student loan repayment benefits. For instance, some firms offer a match assistance program, where as long as employees make contributions to their student loan balances, their employer will also contribute a certain percentage toward repayment. This assistance can accelerate employees’ path toward becoming debt-free and increasing their overall wealth.

3. Contribute to employees’ emergency funds.

A key element of financial wellness is the ability to cover emergency expenses. About 60% of Americans say they won’t be able to afford a $1,000 emergency, according to a 2023 Bankrate report, without going into debt. This inability to afford a $ 1,000 emergency is a huge indicator of poor financial wellness, moreover, it can leave Americans at risk for more debt. 

Although debt affects all Americans, it affects Black and brown Americans differently. According to the Aspen Institute Financial Security Program (FSP), Black and brown employees are more likely to face negative consequences for their looming debt, such as bankruptcy, debt collection lawsuits and poor mental health.

Sometimes creditors or debt collectors will resort to lawsuits in an attempt to collect owed money — generally about 15% of debts are sued by a creditor or debt collector regarding unpaid funds. However, according to the Aspen Institute FSP, the majority of the debtors sued for unpaid funds identified as either Black or Latinx. 

Companies across the nation have presented several solutions that can aid employees during financial emergencies. For instance, some have increased employees’ access to affordable loans and lines of credit by investing in financial wellness solutions. Other companies have invested in emergency funds (also known as rainy day funds) for employees — these funds are designed to help employees save for, and afford, a financial emergency, without having to go into debt or dip into their 401(k) savings.

Looking for a financial wellness program fit for all? Consider Best Money Moves.

Best Money Moves is a mobile-first financial wellness solution designed to help dial down employees’ most top-of-mind financial stresses. As an easy-to-use financial well-being solution, Best Money Moves offers comprehensive support toward any money-related goal. With 1:1 money coaching, budgeting tools and other resources, our AI platform is designed to help bolster employee financial wellbeing. 

Whether it be paying off debt or securing a mortgage, Best Money Moves can guide employees through the most complex financial times and topics. We have robust benefits options for employers, regardless of their benefits budget. 

Our dedicated resources, partner offerings and 700+ article library make Best Money Moves a leading benefit in bettering employee financial wellness.

To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.